Core Viewpoint - The recent interest rate cuts and policy adjustments by the central bank are expected to significantly lower home purchasing costs, creating new opportunities for potential homebuyers [1][3]. Summary by Sections 1. Decrease in Home Purchasing Costs - The central bank's announcement on May 7 initiated a series of policies aimed at reducing home purchasing costs, including a 0.5% reduction in the reserve requirement ratio, injecting approximately 1 trillion yuan into the banking system [3]. 2. Adjustment of Housing Provident Fund Loan Rates - Starting from May 8, the personal housing provident fund loan rate was reduced by 0.25%, with the new rates set at 2.60% for first-time homebuyers and 3.075% for second-time buyers. This adjustment applies to both new and existing loans [5]. 3. Impact on Existing Loans - Existing provident fund loan rates will also be adjusted downwards starting January 1, 2026. For a loan of 1 million yuan over 30 years, monthly payments could decrease by over 130 yuan, resulting in a total interest reduction of more than 47,000 yuan [6]. 4. Commercial Loan Rate Reduction - Following the provident fund rate cuts, the Loan Market Quote Rate (LPR) was also reduced by 10 basis points on May 20, with the one-year LPR at 3.0% and the five-year LPR at 3.5%. This reduction lowers the mortgage rates for first-time and second-time buyers in major cities like Shanghai [8]. 5. Lower Down Payment Ratios - Many regions have reduced down payment ratios to 15% for first-time buyers and 25% for second-time buyers, significantly lowering the initial financial burden on homebuyers. For example, a 200,000 yuan home previously required a 60,000 yuan down payment, which is now reduced to 30,000 yuan [10]. 6. Tax Policy Optimizations - Tax policies have also been optimized, with cities like Shenzhen and Hangzhou adjusting tax rules to reduce the tax burden on homebuyers. For instance, in Hangzhou, individuals selling homes held for over two years are exempt from value-added tax [12]. 7. Market Response and Trends - Sales in major cities are beginning to recover, with a 17% year-on-year increase in transaction volumes in core cities. New home prices in first-tier cities have risen for five consecutive months, indicating a gradual restoration of market confidence [14].